Just when you were getting accustomed to your 802.11b Wi-Fi
network, new technology reared its ugly head. Proxim, Intel and
others have rolled out 54Mbps 802.11a wireless networks. But
there's one difference: Proxim multiplexes its network to
achieve speeds of up to 108Mbps.

10%of B2C online transactions will be conducted on
devices other than a PC by 2005, compared with 0.2 percent in
2001.SOURCE: Gartner Inc.

That's way faster than the standard 11Mbps Wi-Fi, so expect
802.11a networks to replace the slower version. But not before
2005, says Cahners In-Stat Group analyst Gemma Paulo. Vendors
aren't in complete agreement on all aspects of the 802.11a
standard. Meanwhile, 802.11b products are stable, have established
distribution channels and cost half the price of 802.11a
alternatives.

You can use 802.11b as a cheap way to network transient
workgroups or for low-bandwidth-intensive data transfers where
stability is valued. 802.11a bandwidth may be needed to share large
graphic files or streaming PowerPoint presentations. Entrepreneurs
might think about offering Internet access or DVD-quality videos in
coffee shops, airports or other public venues.

Holding Pattern

It's not time to go 3g quite yet.

Put your plans for 3G wireless phone applications on the back
burner. Any chance that the military would let its 1,700MHz band be
auctioned off for 3G networks crumbled along with the World Trade
Center. And that's a blessing in disguise for wireless carriers
and users, says Rudy Baca, a global wireless analyst for Precursor
Group in Washington, DC. Unlike their overseas competitors, U.S.
providers won't have to spend billions in a band rush. U.S.
customers won't need new $500 to $600 handsets to run 3G
applications that aren't exactly mission-critical. ("NTT
Docomo's killer apps are Hello Kitty ring tones and mobile
karaoke," notes Baca.)

Network providers currently face increasing costs and falling
per-capita revenues from a still rapidly growing base of users. Not
surprising, their customers experienced more service problems that
took longer to solve in 2001 compared to the year before, reports
J.D. Power and Associates.

Expect a 3G-enabling bandwidth auction sometime in 2004, says
Baca, and network rollouts in 2006, when applications will be
compelling enough to get customers to buy up. Meanwhile, a more
sympathetic FCC is likely to let large American operators buy
smaller ones and consolidate second-generation networks into
all-digital 2.5G networks. In an uncertain economy, that's a
safer development target for entrepreneurs.